How To Plan Your Growth Via SIP In 2021
What Is An SIP?
SIP stands for Systematic Investment Plan. It is a method of investing in mutual funds on a periodic basis (quarterly, monthly, weekly).
How Do SIPs Work?
You invest a certain amount (as low as Rs. 500 and as high as you wish), at fixed intervals of time (weekly, monthly, quarterly), and allow this to grow over a period of time.
SIPs invest in MFs, which depending on the type of mutual fund, invest in shares of businesses, or fixed income instruments such as bonds.
SIPs offer financial discipline, with a fixed amount set aside, with the aim of future growth. Plus, you can invest regularly without worrying about market mood, index movement etc.
SIPs average your purchase cost while maximising growth. It minimises risk, it’s convenient, and it grows your wealth slowly but surely.
The investor must be over 18, have a bank account with the required funds, and ensure that the SIP investment amount is readily available in the account before the investment date.
Large Cap MFs
Some of the best large cap MFs to invest in via SIP include ICICI Prudential Bluechip Fund, Mirae Asset Large Cap Fund, and Aditya Birla Sun Life Frontline Equity Fund.
Mid Cap MFs
Some good mid cap MFs to invest in via SIP include Nippon India Growth Fund, L&T Midcap Fund, Franklin India Prima Fund, Kotak Emerging Equity Scheme, HDFC Mid Cap Opportunities Fund.
Now that you know the hows, whys and whats of investing in SIPs, get started today!
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.